Building a multi-vendor marketplace in 8 steps
- Emeline Kerloch
- 6 minutes de lecture
Key points for a successful build of your marketplace platform:
1. Have an idea.
It may seem obvious, but every project starts with an idea! That idea can turn into innovation and real success if it is given the resources to make it happen. From this idea, set clear goals for your multi-vendor marketplace. Think about an unmet need in the current market, or an innovative way to bring suppliers and customers together.
For example, Jeff Bezos created Amazon to become the world’s largest bookstore because he couldn’t find the books he wanted locally. Similarly, Milda Mitkute, the creator of Vinted, came up with the idea for her platform because she wanted to sell her clothes easily and quickly while promoting sustainable fashion. Other players on Origami Marketplace have also combined passions and the circular economy, like Camille Traverse, the founder of Preppy Sport, who wanted to resell her old riding gear and allow young riders to equip themselves at a lower cost.
Why is this important? Because it is an excellent indicator of market movement. It helps you understand demand and assess the overall performance of your marketplace platform.
2. Develop your business plan.
Having a brilliant idea is not enough. It is crucial to create a solid business plan and frame your project to effectively transition from ideation to implementation. This document should include an analysis of your target market, a marketing and sales strategy, a detailed financial plan, and a clear explanation of your business model ( commission on sales, seller or buyer subscriptions, listing fees, etc.).
Do you have doubts about the sustainability of this model? According to a study by Statista, the global marketplace market will reach $7.1 trillion by 2025. There is no better time to start!
Download our free marketplace specifications template.
Here you will find all the essential features to succeed in your C2C, B2C or B2B multi-vendor marketplace. This model provides a simple backlog to guide you through each step of your project.
3. Create a budget.
Building a multi-vendor marketplace requires financial resources. It is therefore essential to ask the right questions about the financial aspects of your project.
Costs can be both fixed (subscription to the software solution, online hosting, payment solution) and variable (development of new functionalities, marketing activities, communication). Budgeting these costs will give you a clearer picture of your project and its business model.
Think about the skills you’ll need to keep your platform running smoothly: do you have people to manage seller onboarding, disputes, or product data moderation? If not, you’ll need to expand your team, which will impact your budget.
For more details, read our dedicated article: How much does it cost to create a marketplace?
4. Choosing your marketplace platform solution.
With so many choices on the market, which one should you choose? Your choice will depend on:
- Your in-house technical capabilities
- The features you need for your marketplace
- The size of your company
There are basically three main models to build a multi-vendor marketplace: Software as a Service (SaaS), On-Premise, and Open Source. Each model has its own advantages and disadvantages. To choose the most appropriate model, it’s important to carefully analyze your requirements and capabilities. This will enable you to choose the most relevant and effective option for your project.
According to Gartner, in 2023, 80% of companies relying on SaaS solutions have cut their time to market in half. Therefore, it may be a good idea to seek the support of experts like the Origami Marketplace team from the very beginning of your project, who can support and validate your idea while minimizing costs.
5. Choosing a Payment Service Provider (PSP).
The marketplace model is different from traditional online commerce, especially when it comes to selecting a payment service provider (PSP). This step is decisive because it determines the payment methods accepted, as well as the fees and services offered, especially for international payments.
A classic e-commerce transaction involves two parties: the buyer and the seller. In the marketplace model, the online marketplace operator acts as a trusted third party and cannot collect payments itself. It must delegate this operation to a PSP.
6. Recruit your sellers.
Easily create and define the buyer persona of your marketplace platfom.
A free guide to adapt your marketing strategy, understand the motivations and disincentives of your future customers, and better convert them, supported by a concrete case study of a C2C marketplace.
7. Prepare a launch plan.
A well-prepared launch plan is critical. Define a timetable, communicate the right message to the right people (your future customers) and improve your performance. Plan your communication campaigns, especially on social networks.
Team Tips 🎓
When you launch your marketplace platform, you should already have your first sellers on board and their listings up. This will help you avoid the “empty store” effect on the day your platform launches. In fact, it’s much easier to bring back customers who enjoyed their experience on their first visit than to bring back customers who weren’t satisfied.
8. Recruit and train your team.
As an online marketplace operator, you’ll need a wide range of in-house skills. Meet with different profiles to build a solid, complementary team. Include business developers, account managers, and someone responsible for moderation and dispute management.
Any last thoughts before starting your project?
Creating a marketplace platform is not easy, but following these steps will get you started on the right path to success. Keep in mind that you will need to constantly tweak and improve your platform to meet the changing needs of your customers and sellers. Did you know that 60% of online shoppers prefer to buy from multi-merchant marketplaces? Take advantage of this trend and get started!
At Origami Marketplace, we’re here to help you get started. If you need help and advice, our expertise and industry-proven solution are at your disposal. Our strength lies in our ability to guide and test your idea while keeping costs to a minimum. Together we can make your idea a real success.
Ensure your success today. Use our free configurator to define the outline of your project and discuss it with one of our experts for a personalized study.
